Major commercial banks are under scrutiny for their slow response to the Central Bank of Kenya's (CBK's) latest interest rate cut.
The move, analysts say, highlights the longstanding trend of lenders being quick to hike but slow to lower borrowing costs.
Mid-August, CBK cut its benchmark interest rate by 25 basis points to 9.50 per cent - the third reduction this year and the seventh since last year - in a bid to stimulate economic activity and boost private sector credit growth, which remains sluggish.
Despite the easing cycle that began in late 2024, commercial banks have been criticised by the regulator for keeping lending rates elevated, stifling borrowing even as inflation stabilises and the economy shows signs of resilience. "The Monetary Policy Committee (MPC) concluded that there was scope for a further easing of the monetary policy stance," CBK Governor Kamau Thugge said in a statement.
